Sunday, April 1, 2018

Stock Options (SSO:SDS) 30 Mar 18

For short-term trading, there are few vehicles available to active traders currently that can offer as much potential for substantial gains as Leveraged ETFs can.  The propensity of Leveraged ETFs to revert back to their mean within a week makes them all the more attractive to traders using a high-probability strategy on a daily basis. 

Symbol
Price
RSI-2
1-Day Rtn
5-Day Rtn
SDS
$40.96
30.63
-2.78%
-0.19%
SSO
$105.48
67.75
2.77%
-1.37%

In looking at ProShares Ultra S&P 500 (SSO) and ProShares UltraShort S&P 500 (SDS) we can see their close inverse correlation, and how you could take a long position in one and a short in another depending on market conditions to protect against unnecessary losses. 

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